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Dispensing with P11Ds

21 May 2013
Issue: 4403 / Categories: Forum & Feedback , Employees , Income Tax

Business expenses will be incurred by one-man limited companies and these will need to be shown on a form P11D and a deduction claimed

I have several one-man company clients. I have educated them into only putting business expenses through the company’s books and this makes the year-end reporting easier.

However they still have travel hotel and subsistence expenses. These must be entered on a form P11D and then claimed on the personal self-assessment tax returns.

My question is whether HMRC would grant a dispensation to such a company given that it is the same person who pays authorises and uses the expenditure?

Furthermore what is the position with entertaining expenditure? If the director takes a client out to lunch is it correct that the expenditure is deductible for the director if it is disallowed for corporation tax or is it more complicated than that?

I would be very grateful for readers’ thoughts.

Query 18 191– Benny Fitt

Reply from Steve Kesby

In recent years...

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